A number of traders, both experts and novices, had problems with the market structure during booms and crashes. For some currency pairs, the boom-crash structure (buy / sell) used to be steeply rising and then equalized over a period of ticks.
If, for example, Boom / Boom-500, Boom / 1000, Crash / Crash-500 and Crash / 500-1000 are traded, an asset can be observed in a boom market that is sold by default and in a crash asset that is bought by default. The synthetic indices 500crash.1000 and crash.500 are another aspect of foreign exchange trading, with the crash representing a decline in the price range on average every 1,000-500 ticks. In Boom / 1,000 and 500 indices, the average is a spike in the price range occurring every 1000-500 ticks.
Trade boom and crash require good analysis, traders need to recognize support and resistance before they enter trading. Sometimes it is difficult to study all the tricks of the market, because there is no 100% perfect strategy.
Trading boom and crash can be a challenge for beginners who don’t know what to do during a boom or crash. There are many things that can prevent you from achieving a good result during a trading boom or crash, such as wrong money management, trader psychology and strategy. According to my research, the physiology of trade is the most important in trade contributing 55%, money management 35% and strategy 15%. If you are looking for boom, crash and index, this article is written for you.
As a rule of thumb, no strategy is 100% perfect but I will try to give you a few tips that will guide you on your way to becoming a successful dealer. Most of what you are looking for, you can get free indicators of boom and crash. Remember, if the indicator you will get is worth 100 dollars, you do not have to pay 100 dollars.
For those of us holding a trade, we are looking for spikes that devour more than 10 small candles, and if we hold until the market reaches EMA9, the market will no longer skyrocket and we will pay out money. If we get a spike, we are waiting for the market to reach EME9, and if the market breaks through that level, it should be no more than three small candles before we leave trading and apply crash and boom. During a trade boom, the RSI indicator is strong in the buying region (price floor) and stronger in the selling zone (price ceiling) in crashes above 500 dollars.
Wait in the M1 timeframe until EMAas and RSI are in an overbought area. When a spike comes, wait until the price drops back below $13 before re-entering. If the 50 EMA exceeds the 200 EMA and goes down, this indicates a strong signal to start selling, as our conditions in the RSI are met.
In this graph of the boom of the 500 index over a 1 hour time frame, the two arrows indicate the EMA and 200 to confirm the direction of the trend. Once this zone is identified, it can be used for several days as the boom 500 market rises.
Figure 5-7 shows the price action chart observed during the crash and boom markets. This confirms the way in which the market structure comes to a head during the boom (buy / crash / sell situation) and the low risk / return ratio during the day (swing trading) due to the small lot size.
Metatrader 4, which was introduced 15 years ago, is still in demand with dealers today. In its first ten years on the market, it has undergone many improvements and has become a market leader among competitors.
Trading during a boom or crash, if you use the right batch size, does not result in a short-term capital loss. During a crash, the 500 is a recognized resistance that supports the traded asset.